EFG Hermes advising on $500m M&A deal in Saudi Arabia

An Egyptian man walks past a branch of the investment bank EFG Hermes in Cairo. EFG Hermes is also working on a number of IPOs with private companies in Egypt. (Reuters)
Updated 04 March 2019
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EFG Hermes advising on $500m M&A deal in Saudi Arabia

  • Saudi Arabia has made attracting greater foreign investment a key part of its economic Vision 2030 plan as it tries to diversify the economy away from its reliance on oil
  • EFG Hermes is one of the banks advising on the potential $1 billion listing of Fawaz Alhokair Group’s Arabian Centers Company expected in the second quarter

DUBAI: Egypt’s EFG Hermes is working on a $500 million merger and acquisition in Saudi Arabia and expects more deals to come out of the kingdom this year, especially from the private sector, its head of investment banking told Reuters.
Saudi Arabia has made attracting greater foreign investment a key part of its economic Vision 2030 plan as it tries to diversify the economy away from its reliance on oil.
The kingdom’s impending inclusion in the FTSE Russell emerging markets index this month is expected to draw billions of dollars of foreign fund flows.
“Saudi I think will be very busy,” Mohammed Fahmi said, on the sidelines of the bank’s investment conference in Dubai which is taking place this week.
“I’m seeing a lot of RFPs (request for proposals) coming from Saudi for IPOs... Private sector companies looking to go public, which I think is a valuable thing.”
The bank is also advising on an initial public offering (IPO) in Saudi Arabia, Fahmi said, but would not give any more details.
EFG Hermes is one of the banks advising on the potential $1 billion listing of Fawaz Alhokair Group’s Arabian Centers Company expected in the second quarter, Reuters has reported, although EFG has declined to comment on its role.
Another executive at EFG Hermes told Reuters in December that the investment bank was working on a major M&A deal in the health sector in Saudi Arabia.
In addition, Fahmi said there were deals underway in the automotive, banking, and facilities management sectors in the kingdom and in the United Arab Emirates.
In Egypt, EFG Hermes is working on a potential fourth quarter $300 million IPO, Fahmi said.
Another IPO for state-owned Alexandria Container and Cargo Handling may occur as soon as the second quarter of this year, Mohamed Ebeid, co-CEO of EFG Hermes Investment Bank told Reuters. EFG Hermes is managing the sale along with Citigroup.
Egypt this week revived its privatization program, which has lain dormant for more than a decade, with the sale of a 4.5 percent stake in tobacco monopoly Eastern Company, which EFG adivsed on.
EFG Hermes is also working on a number of IPOs with private companies in Egypt, Ebeid said, mostly on the industrial side.


Hyundai invests $300 million to help India’s Ola battle Uber

Ola was launched in 2011 and is engaged in an aggressive battle with Uber in India’s ride-hailing market. (Reuters)
Updated 44 min 54 sec ago
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Hyundai invests $300 million to help India’s Ola battle Uber

  • Ola was launched in 2011 and is engaged in an aggressive battle with Uber in India’s ride-hailing market
  • Ola says it handles around a billion rides a year across India’s major centers

MUMBAI: Indian taxi-hailing company Ola has secured a $300-million investment from South Korean car giant Hyundai, the firms said Tuesday, providing a major boost in its fight against US giant Uber.
Ola was launched in 2011 and is engaged in an aggressive battle with Uber in India’s ride-hailing market, which is estimated to be worth around $10 billion and growing fast.
The new money, from Hyundai’s subsidiary Kia Motors, will largely be used to help Ola increase its electric vehicle fleet, the companies said in a joint statement.
“Our partnership with Ola will certainly accelerate our efforts to transform into a smart mobility solutions provider,” Hyundai executive vice chairman Chung Eui-sun said in the statement.
Bangalore-based Ola announced last year that it planned to put a million electric vehicles on India roads by 2021.
Ride-hailing apps are booming in the country despite stiff opposition from traditional taxi firms and some initial concerns about passenger safety.
Ola says it handles around a billion rides a year across India’s major centers, as well as seven cities in Australia.
In 2018, Ola also announced operations in Britain as part of a drive into other markets as competition with Uber intensifies on home turf.